Beyond digital


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Presented at the event "Can mass media organizations have success on Facebook?" (Kan medievirksomheder få succes på Facebook?) hosted by the Association of Danish Media

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  • Seemingly every public and private setting showcases the rampant adoption of digital devices, accompanied by the intense desire to stay engaged by keeping those devices turned on. “Connected living” is impacting almost every aspect of our daily lives, including health, travel, home and work. Google search trends, for example, are good indicators for predicting the spread of infectious diseaseEmotional dependency on technology noting that 53 percent of its UK respondents feel “upset” when denied Internet connectivity and 40 percent feel “lonely” if they can’t get online.
  • 61 percent of Americans said it would be easier to live without air travel than the Internet.
  • One way the connected consumer era takes the industry “beyond digital” is by challenging the industry to provide tailored, seamless experiences that are highly relevant to individual consumers.
  • To better understand the connected consumer phenomenon, we asked respondents which of the following terms best matches their own approach to digital device adoption:I adopt the latest and greatest devices as soon as they are available I purchase at about the same time when many others seem to be purchasing I am typically one of the last to purchase I don’t typically purchase new devices, I am happy with the technology I have.
  • Indeed, over 50 percent of global mainstream consumers have adopted a wide range of digital consumption behaviors: from checking news and watching video online, to accessing mobile services, participating in social networking and visiting user-generated content sites
  • In terms of bandwidth, this type of online viewing option has already eclipsed every other form of Internet use since 2010.
  • In a profound shift from the linear nature of traditional content consumption, global consumers are distracted, decreasingly giving TV their undivided attention. Rather than “leaning back” to focus passively and exclusively on a TV program, consumers today are likely to also be interacting with content in at least one other way. They are often distracted by content unrelated to what is on TV – and perhaps also chatting with friends
  • The “place-shifting” capability made possible by mobile devices is closely related to the content consumption behaviors of time-shifting and distracted viewing. This trend will only accelerate. In 2015, it predicts a gap of 780.8 million mobile devices versus 479.1 million PCs.
  • This aspect of connected consumer behavior is not just about connecting with content everywhere; it’s about connecting with people everywhere, too.
  • The availability of connected content has empowered consumers to expect instant access to desired content, including advertising. It is changing how traditional media is paid for and consumed. Meeting demand for connected content is the key to growth
  • Consumers watch substantially less regular TV as their use of mobile video increases.
  • From 2000 to 2009, the primetime TV audience has declined steadily for network, independent, public and pay cable TV.Declining viewership of broadcast networks exemplifies that mass audiences are splintering into behavioral micro-segments. Go beyond traditional age segmentation to become masters at understanding customers’ digital behaviorsContrary to popular belief, not all early digital adopters are college age. And distracted viewing and social networking are practiced widely across all age groups. Clearly, age is not the only distinguishing characteristic for today’s connected consumers’ digital behaviors.increasingly, not everyone will be “acting their age.Across age groups, 52-75% of this group reports using all of the following digital content services: Internet on their mobile phones, music on their mobile phones, mobile information services, online video on their PCs, video on demand on their home TVs, music services, online video games, user-generated content web sites, social networking, online newspapers and online magazines.
  • The 2011 survey shows that across all of these markets, it’s no longer just a minority of young early adopters who are digitally connected. So are today’s mainstream consumers, a group that cuts across age boundaries and consists of those who charac- terize themselves as buying electronic devices at about the same time as others.
  • Innovative pricingFrom $14.6 billion in total music sales in 1999, to $6.6 billion in 2009Yet, more people are listening to music than ever. The challenge is that the value has shifted away from the traditional music labels
  • As the M&E industry evolves beyond the digital era to the connected consumer era, providers need to act differently. Many M&E providers are not sufficiently in touch to provide the relevant, tailored digital content experiences that consumers now desire.
  • To engage more directly and meaningfully with consumers, M&E providers should• Build direct consumer interactions, where feasible. For example, set up and use company websites to make the most of customer feedback on the entire content experience (from sampling to purchase to ownership/“rented” access)Access and aggregate any direct consumer information you can, partnering with others as necessary to obtain the data you need. Deep consumer understanding will illuminate the levels of interactivity required with both content and fellow audience members to satisfy key consumer constituencies.Wring out compelling consumer insights down to relevant micro-behavioral segmentation levels. In the future, such consumer insights will drive, for example, story branching with tailored endings being delivered to individual consumers via different devices.Use deep consumer understanding to tightly pull together the players in your industry value chain – producers, distributors, advertisers and your company – to work together toward more effective monetizing of each consumer with your content experiences.
  • Providing tailored customer experiences require to building insightful consumer profiles that include digital behavioral personas. They will need to continuously update consumer profiles as quickly as consumers evolve their digital content consumption behaviors, such as:Profiling consumers not only based on their age, but also on their willingness and capability to access content and their behaviors in interacting with and immersing in itAllowing for consumers to exhibit different behavioral profiles (such as facets of their digital personalities) based on type of content experiencedUsing historical “structured” behavioral selections as well as real-time “unstructured” data to complete the picture.
  • Four prominent types of digital personalities that are not age-based, but instead are based on the combination of degree of access to content and intensity of content interaction
  • Even aging traditionalists fall into this category as they adopt behaviors like: sending email instead of letters; accessing video on demand on their home TVs; accessing news, magazines and video content online, primarily via their PCs; creating a profile on a social networking site (like Facebook); accessing the Internet via mobile phone to browse the web or use mobile navigation services; and substituting in-store experiences with shopping online as they follow the “path of least resistance.”
  • They often watch TV shows and movies online, frequently download music or listen to streaming music online, and regularly play online games alone and/or with others.
  • They use mobile phones primarily to call and IM others, maintain/update a profile on a social networking site (like Facebook) regularly, visit social networking sites religiously, frequently add labels or “tags” to online photos and web pages, and often view videos from other users (on YouTube, for example).
  • Connected Maestros combine the behaviors common to Content Kings and Social Butterflies with even more sophisticated behaviors. These advanced activities include talking using voice IM; regularly consuming media content (like games, music or video) via mobile devices (such as phones and tablets); frequently accessing multiple apps via mobile devices; and regularly checking news, weather, sports scores and information searches via mobile devices.
  • To deliver the desired experiences, content cannot stand alone. Appealing content has to reach the right consumers (by using analytics), when and where they desire (using a smart, integrated infrastructure), with the right features (such as social).
  • Customer analytics is vital to selling more content properties and better monetizing each sold property.
  • Making content more social entails social media, but it also includes finding smarter ways to connect to customers, connect the ecosystem and build content. Social media facilitates unique, emotion-producing immersion into content experiences.Important challenges face those looking to add social attributes to digital content.
  • New analytics can help companies innovate revenue models by providing insight about preferences, behaviors and buying patterns
  • Expansion of a game developer’s revenue model could add many more revenue streams than what was historically available
  • Going beyond providing analog content to digital channels offers an opportunity to develop more strategic and tailored relationships with consumers. Little has been done to differentiate “the product” itself to accommodate the new micro-segments that have replaced legacy mass audiences
  • This feature, which premiered during last year’s Open, can determine the three most important factors in determining victory in a given match, customized for each particular opponent.  These measures also include goal and status amounts.  In effect, they are key performance indicators (KPIs), and the Keys to the Match display is a scorecard, bringing the use of that term full circle, back to competitive sports.   But rather than straight Online Analytical Processing (OLAP), these KPIs are derived from performing predictive analytics on the last 7 years’ worth of data from all four grand slam events, totaling 39 million data points.
  • In this light, IBM forged a partnership with the USTA to collect tennis data from the top 100 players around the world. Every forehand, double fault, point, temperature, match duration, serve speed, etc. is captured in real-time.
  • Beyond digital

    1. 1. Beyond Digital Global trends on connecting media & entertainment to the future
    2. 2. Kasper Risbjerg Social Business Manager @ IBM @kasperrisbjerg
    3. 3. Greater digital connectedness is here to stay • Worldwide, consumers increasingly expect content on demand wherever they are – all the time. • 78% identified themselves as digital device adopters; of these, more than half report reading newspapers online. • “Connected living” is impacting almost every aspect of our daily lives • Emotional dependency on technology
    4. 4. People check their smart phones an average of 34 times per day
    5. 5. More video is uploaded to YouTube in one month than the three major U.S. networks created in 60 years
    6. 6. Digital Device Adoption
    7. 7. A Tipping Point “the moment of critical mass, the threshold, the boiling point, where little things make a big difference” - Gladwell
    8. 8. How connected consumers want to consume content
    9. 9. Viewing on demand • Over half of early adopters and mainstream consumers consume online video such as Hulu and Netflix • 71 percent of adults use video on demand sites. Parents are the largest user group – not just young adults • 81 percent visit sites like YouTube
    10. 10. Non-linear viewing • Consumers are increasingly distracted • Three-fourths of adults reported surfing the web while watching TV • No longer passive consumers of media
    11. 11. Mobile access • The “place-shifting” capability • +50% of early adopters and mainstream consumers regularly access content on their smart phones or other portable devices • In 2015: a gap of 780.8 million mobile devices vs. 479.1 million PCs
    12. 12. Social consumption • Consuming anywhere while connecting with people everywhere • Social content consumption have also reached a critical mass worldwide • 41% upload photos • 44% post messages • 52% engage in social networking • 64% text friends … while watching TV
    13. 13. Challenges presented by the changing media landscape
    14. 14. Content cannibalization is real • Traditional media and devices are in decline • Breaking news is widely available on their own sites and on social networking sites • +2x as many consumers use online sources for breaking news than printed newspapers • Consumers are showing signs of “cord shaving” – and even “cord cutting”
    15. 15. Mass audiences are shattering • Mass audiences are splintering into behavioral micro-segments • Age is far less meaningful than before in differentiating micro-segments • Contrary to popular belief, not all early digital adopters are college age • 65% of consumers aged 55-64 report surfing the Web and texting with friends while watching TV • Same goes for 49% of consumers aged 65+ • 52-75% uses all of digital content services
    16. 16. Digital revenue models generate less revenue Digital revenue streams have yet to deliver value that is comparable to traditional models Ad-supported models have yielded a substantially lower return than broadcast TV, for example More than two-thirds of early adopters are willing to pay for content
    17. 17. Go beyond digital to deliver customized experiences
    18. 18. Act like a B2C company • Build direct consumer interactions, where feasible • Access and aggregate any direct consumer information you can • Wring out compelling consumer insights down to relevant micro-behavioral segmentation levels. • Use deep consumer understanding to tightly pull together the players together
    19. 19. Target consumers based on their “digital personalities” Providing tailored customer experiences require insightful consumer profiles that include digital behavioral personas. • Profiling consumers on their willingness to access content and their behaviors in interacting with and immersing in it • Using historical “structured” behavioral selections as well as real-time “unstructured” data to complete the picture.
    20. 20. Target consumers based on their “digital personalities”
    21. 21. Efficiency Experts • 41% of the global sample • These consumers see the adoption of digital devices and services as a way to make life easier • “The path of least resistance”
    22. 22. Content Kings • 9% of the global sample • Dedicated gamers, newshounds, movie buffs, music lovers and TV fans • Content Kings want an “all-access pass” to content
    23. 23. Social Butterflies • 15% of the global sample • Social Butterflies cannot imagine not being able to instantly access any of their friends, regardless of time or place • Highly addictive to social media and their smartphones
    24. 24. Connected Maestros • 35% of the global sample • Connected Maestros combine the behaviors of Content Kings and Social Butterflies with even more sophisticated behaviors • Connected Maestros, with their “always on” behaviors, are a window into the future • 32% of Connected Maestros are early adopters compared to < 5% of the other digital personalities
    25. 25. Deliver relevant, enhanced experiences To be relevant, differentiated customer experiences have enhanced characteristics • Seamless integration across devices • Being personal, insightful, relevant and contextual • Immersive, with lines blurred between being a spectator and being a participant • Social embedded into the content Consumers say they look forward to interacting more personally with digital content
    26. 26. Deliver relevant, enhanced experiences with Analytics • A wealth of real-time data is available • Aggregate a total picture of a consumer’s digital personality, habits and priorities across touchpoints • Integrate past and current data to optimize the use of customer analytics • Link to advertising based on customer analytics in real-time • Drive personalized marketing campaigns tailored to a diverse array of platforms and devices
    27. 27. Deliver relevant, enhanced experiences with Social • Identify content that is attractive to targeted customer segments and engages them in real-time • Provide instantaneous access to a shared experience with others in the throes of the same content/ experience • Create communities based on common interests and tailor marketing messages for “viral” travel along pre-existing social networks • Create and cultivate brand ambassadors to enhance ratings • Develop exclusive content for social media users as a customer retention strategy
    28. 28. Connect consumers, content and monetization • Consumers want relevant messaging, pricing models that provide choice and flexibility, and a seamless experience across their devices • New revenue models need to evolve beyond a “one size fits all” mold and offer the relevancy, choice, integration and packaging options consumers demand • 39% preferred to watch a movie on a website and pay by viewing ads • 36% preferred a subscription model on tablets • 36% preferred to pay per use on smartphones
    29. 29. Expansion of a game developer’s revenue model
    30. 30. Looking ahead • What actions are you taking to build consumer and consumer- style interactions and insights? • How will you identify the digital personalities of your most important and valuable consumers? • In what ways can your content be transformed into experiences that leverage analytics and social media? • What sorts of revenue streams are possible and which payment models should you offer?
    31. 31. US Open 2012 • Partnership with ESPN and United States Tennis Association • 22 years of collecting and delivering data • (Predictive) Analytics: real-time updated statistics, Slam-tracker • Social: unique profiles, different ways of interacting • Accessible everywhere - virtually and physically
    32. 32. US Open 2012
    33. 33.
    34. 34. Picture Courtesy Slide 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. &